DAX Index Price Forecast – German DAX to Continue Positive Movement as Global Trade Tensions Ease

Germany equities were higher at the close on Monday, as gains in the Pharmaceuticals & Healthcare, Chemicals and Basic Resources sectors propelled shares higher. At the close in Frankfurt, the DAX gained 0.99%, while the MDAX index climbed 0.47%, and the TecDAX index climbed 1.25%. Advancing stocks outnumbered falling ones by 463 to 226 and 92 ended unchanged on the Frankfurt Stock Exchange.

The DAX volatility index, which measures the implied volatility of DAX options, was down 10.33% to 16.09. Asian stocks rose on Tuesday, supported by hopes Beijing and Washington would dial back trade hostilities, though comments from the U.S. president about the Yuan and Federal Reserve policy capped gains and weighed on the dollar. The immediate focus is on the lower-level trade talks due to start this week between the United States and China. Speculation that the talks might help ease trade tensions has shored up the broader equity markets over the past few sessions.

European Equities To See Sideways Movement as Market Optimism Took A Hit On Trump’s Comment of Euro Being Manipulated

The euro brushed a 12-day high of $1.1544 EUR stretching its gains after climbing about climbing about 0.35 percent overnight. Trump’s open expression on Fed rate hikes has caused Greenback to weaken in broad market however Market optimism was tested after Trump said he did not “anticipate much” from the Sino-U.S. trade talks and blamed China & Europe of manipulating their respective currencies. Key Asian stock markets performed well during today’s market hours. Chinese shares rose, with the Shanghai Composite Index climbing more than 1 percent, helped by bargain hunting of consumer and healthcare firms after their recent slump. However German DAX futures trading in the international market are down 0.12% ahead of European market hours and key European stock exchanges are expected to see slight dovish opening today.

This negative sentiment in European stock market was influenced by multiple factors such as Turkey’s lira falling on cuts to the country’s credit ratings and after shots were fired outside the U.S. Embassy in Ankara and proceedings of Italian government’s budget plans which is putting Italy in direct conflict with EU. German DAX is expected to see some sideways movement in early market hours but overall momentum is expected to remain positive for the day.  With investors making most of the news-driven short-term volatility, European markets are expected to see a normal level of activity. Macro calendar remains silent for the next 48 hours on German market as Investors wait for Manufacturing & Service PMI’s scheduled to release on Thursday.